“Even if the U.S. substantially increased the use of natural gas, there would still be substantial gas left to meet its domestic needs for decades,” Roger Ihne, principal in the energy and resources practice at Deloitte, said.
Nevertheless, Martin Houston, head of BG’s LNG business, projects natural gas prices will be higher than the current average domestic prices of $4 seen over the past year but still below global prices.
According to the Energy Department’s Energy Information Administration, the U.S. has 2,500 trillion cubic feet of potential natural gas resources and gas from shale makes up 862 trillion.
Recently, the EIA announced that natural gas storage dropped by 1 billion cubic feet, but inventory levels still remain 7.3% above the five year average.
- United States Natural Gas (NYSEArca: UNG)
- United States 12 Month Natural Gas (NYSEArca: UNL)
- Teucrium Natural Gas (NYSEArca: NAGS)
- iPath DJ-UBS Natural Gas TR Sub-Idx ETN (NYSEArca: GAZ)
United States Natural Gas
For more information on the natural gas market, visit our natural gas category.
Max Chen contributed to this article.
Full disclosure: Tom Lydon’s clients own UNG.